Fact Sheet August 2014

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Fact Sheet August 2014 Read Now Print Now bank Paragon Bank is part of the FTSE 250 Paragon Group of Companies, the UK s leading independent, buy-to-let lender and consumer finance specialist... bank car finance personal finance

Paragon Bank Launched in February 2014, Paragon Bank is a new British bank targeting opportunities in the UK consumer finance and SME markets. Paragon Bank is part of the FTSE 250 Paragon Group of Companies, the UK s leading independent, buy-to-let lender and consumer finance specialist. Established in 1985, Paragon Group has over 10 billion of assets under management. The development of Paragon Bank builds on the Group s heritage, model and resources extending the Group s specialist lending expertise into new markets and leveraging its low-cost, centralised operating model to minimise start-up costs. Paragon Bank is led by Managing Director, Richard Doe, previously Chief Executive of ING Direct UK, with an experienced banking and consumer finance management team and Board of Directors. In its first year, Paragon Bank is planning to launch four product ranges savings, car finance, personal loans and buy-to-let. It will concentrate its initial lending in areas where the Group has previous success and extensive experience. Paragon Bank doesn t offer complicated products or operate an expensive branch network just safe, simple and transparent savings products available direct to consumers online and straightforward loan products distributed through a trusted network of intermediaries. Safe, simple and transparent savings products available direct to consumers...

Richard Doe, Managing Director Until 2013, Richard was CEO of ING Direct UK, having previously been Marketing & Strategy Director. Prior to working at ING, Richard held a number of senior marketing positions in the financial services industry including at The Woolwich and Legal & General. Richard is a Chartered Banker. Malcolm Hayes, Chief Risk Officer Malcolm joined Paragon Bank from Lloyds Bank plc where he was most recently the Control Function Director for the SME Banking business. Malcolm has over 30 years experience in banking and has held a range of senior positions spanning all major risk disciplines. Andrew Smithson, Finance Director Andrew was Head of Finance at Unity Trust Bank between 2005 and 2013. Prior to working at Unity Trust Bank, Andrew worked for the Financial Services Authority and for KPMG in the audit and advisory practices. Andrew is a Chartered Accountant and a member of ICAEW. Stephen Blaney, Non-Executive Chairman Stephen has held a number of senior executive and non-executive appointments in the financial services industry, including Chairman of the Fairmount Group plc, Managing Director of Legal & General Financial Services and Managing Director of the UK private bank, Brown Shipley where he was non-executive Chairman until 2012. Stephen is currently a nonexecutive director at Blevin Franks and is a member of the Chartered Institute for Securities and Investment. Julian Rance, Head of Car Finance Julian has over 25 years experience in the car finance market, 11 years spent with Forward Trust Group and 17 years with Paragon Group. Julian was Managing Director of Paragon s previous car finance asset origination business and has management experience in all aspects of the car finance market, including consumer, corporate and wholesale funding. John Webb, Head of Personal Loans John has over 30 years experience in the secured loans market and, prior to joining Paragon, managed the two secured loans companies owned by HFC Bank. John joined Paragon Group in 1999 and helped to set up the previous personal loans business, Paragon Personal Finance Limited. John became Managing Director in 2002 and established the company as a leading supplier to the secured loans broker market. John is Chairman of the FLA Secured Lenders Group. Nigel Terrington, Non-Executive Director Nigel is Chief Executive of The Paragon Group of Companies. He joined the Group in 1987 and became Chief Executive in 1995, having previously held the positions of Treasurer and Finance Director. Prior to joining the Group, Nigel worked in investment banking. He is a member of HM Treasury s Home Finance Forum, and he has previously held the positions of Chairman of the Council of Mortgage Lenders, Chairman of the Intermediary Mortgage Lenders Association, Chairman of the FLA Consumer Finance Division and Board member of the Finance & Leasing Association. He is an Associate of the Chartered Institute of Bankers. Patrick Newberry, Non-Executive Director Patrick spent 25 years as a consulting and regulatory partner with PWC until his retirement in 2013, concentrating on the financial services industry. He was a member of PwC s Supervisory Board, Chair of the Strategy, Governance & International Sub Committee and a member of the Audit & Risk Committee. Over the course of his career, Patrick has established close links with the FCA and Bank of England regulatory teams, as well as the Government and he is a frequent public speaker and author on issues affecting the financial services industry. Patrick is a Non-Executive Director of Unipart Expert Practices. - Board Member - Executive Committee Member

Paragon Savings Paragon Bank s savings products include: Easy Access, Notice and Fixed Rate Savings Accounts. Safe, straightforward and transparent, Paragon Bank s savings products are available online, with support from a UK-based customer services team. Paragon Bank will expand its savings product range over time. Over 1 trillion outstanding UK retail savings deposits as at December 2013 Direct Access Accounts Fixed Rate Accounts Paragon Bank is registered under the Financial Services Compensation Scheme (FSCS) which protects eligible deposits up to a total of 85,000. *AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis. ISAs (Source: Bank of England/FCA) 43% and of UK savings accounts opened managed online (Source: GfK FRS)

Paragon Car Finance Paragon has a decade of experience in prime car finance products, previously writing in excess of 900 million of car loans. 2.26 million new UK car registrations in 2013 (Source: SMMT) Paragon Car Finance offers a choice of competitively-priced hire purchase and lease purchase products with clear and flexible terms for consumers and corporates, via authorised dealers and brokers. All products are backed by a fast, new, easy-to-use online application and processing system, together with best-in-class service all designed to offer consumers more choice. 6.7 million UK used car sales in 2013 (Source: SMMT) 28 billion of car finance arranged in the UK in 2013, up 18% on the previous year (Source: FLA)

Paragon Personal Finance Paragon Bank s personal loans will be available from Paragon Personal Finance later this year through a network of approved intermediaries. The launch of Paragon Personal Finance marks the Group s return to a market in which it has over a decade of previous experience. Paragon will offer a choice of competitive rates, market-leading systems and top-quality service, designed to offer consumers more choice.. 445 million secured personal loans arranged in the UK in 2013, up 37% on the previous year (Source: FLA)

Buy-to-let Paragon Bank plans to develop opportunities to expand the Group s buy-to-let lending with products that are complementary to the Group s existing lending through its established business, Paragon Mortgages and Mortgage Trust.. The UK private rented sector comprises 4.9 million properties and is forecast to grow to 5.8 million by 2018 (Source: Communities & Local Government / CB Richard Ellis / Savills)

Contact us... Media contact: Paragon Bank Kathryn Rhinds PR Manager Tel: 0121 712 3161 / 0845 849 4003 Email: kathryn.rhinds@paragon-group.co.uk Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 5390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. For further information, visit www.paragonbank.co.uk PBK9612 (08/2014)